Samsung Will Supply Chips For Next Apple iPhone

A South Korean newspaper has reported that Samsung has signed a deal to provide the new generation iPhone processors. Under the agreement, the South Korean manufacturer will provide Apple with 75-percent of its needs; although there is no word on who will be supplying the rest of the processors.

This news doesn’t come as too much of a surprise as Samsung has already been supplying some of the processors for the current iPhone 6 and 6 Plus. However, that deal was set to expire last year; and analysts did not expect it to be renewed after Samsung increased the price of processors by 20-percent.

Most had assumed that Apple would take full control of building the new Cortex-A9 processor for the next iPhone, especially after efforts to to bring its semiconductor building in-house. It could be speculated that those efforts are not moving fast enough for Apple to meet demand for its next smartphone, which is due later this year.

Samsung will be building the new processors for Apple from its plant in Austin, Texas. Which would allow Apple to maintain its efforts to at least keep production of the iPhone in the US.

There is little known about the new iPhone, although this new chip is also expected to power a next generation iPad Air and iPad Mini.